Musk and Zuck- Cage Match At The Capitol

Market Snapshot 📸

🍎 APPL- Tuesday close @ $176.30 (-1.71%)

Apple unveiled the iPhone 15 to the world today. Users will yet again have to adapt to a new charging system as the phones now boast USB-C ports. This change stems from an EU law mandating devices fully support the USB-C port by 2024.

Okay…And??

Apple shares are down almost 2% following the product launch, however, historical data shows this should not be a surprise. Shares fall on average 0.2% on phone release days. While market history shouldn’t always be relied on, it looks as though the stock gains momentum in the following months…keep a close 👁️ on 6 months from today.

GOOG- Tuesday close @ $136.07 (-1.21%)

Google is in some hot water. The company is on the hook for allegedly violating certain antitrust laws (think laws that aim to keep a fair market…🚫 no monopolies allowed🚫).

Google has reportedly paid millions to be the default search on iPhones. (Uhhh, can you blame them??) The argument is that Google will effectively control the future of AI if it remains the dominant search engine. The reason being that since Google commands roughly 90% of the internet search market, AI will inevitably comb its vast database, giving Google the opportunity to manipulate data.

All I have to say is good luck to those litigators. 🫡 I’m going out on a limb here and saying that Google might have a few extra bucks to spare retaining top-notch lawyers.

Quote of the Day…💭

“Luck is what happens when preparation meets opportunity.“ - Lucius Seneca

Special Treat 🍬

All-Star lineup set to speak in front of the Senate tomorrow 🔥🔥🔥

Although their cage match was called off, Mark Zuckerberg and Elon Musk will have a closed door meeting with all 100 senators to brainstorm regulatory systems for A.I. technology. Microsoft Co-founder, Bill Gates, and Google CEO, Sundar Puchai, will also be in attendance.

Senator Cynthia Lummis said, “What we want to do is make sure that we’re not helping create monopolistic situations in emerging industries and AI is an emerging industry.”

However, some believe that A.I. may be a bit advanced for some Senate members. How can you make laws on something you don’t understand? Ahem ahem… 🍄

Anyway….

The best quote comes from Speaker Kevin McCarthy, “I mean, I saw Schumer went out and said he wanted to regulate AI. Schumer uses a flip phone. I’m not sure a guy with a flip phone that doesn’t even know how to use a smartphone should be talking about what he’s doing in AI.”

The future of AI is officially upon us as lawmakers attempt to wrangle in Pandora’s box. The next 6-12 months will prove important for the future of the industry as tech giants continue to pour money and resources into building AI models and autonomous systems.

Let’s see how much Nancy Pelosi profits from these meetings…

Uncertainty Remains❓

The Consumer Price Index, which is a basket of goods the Fed uses to measure inflation, has been steadily declining since the ridiculous 9.2% peak last summer. However, it’s looking like economists are expecting a slight uptick in inflation this month from 3.2% in July to 3.6% in August.

Why is that?

Well, energy costs are a big component of the data, and with Saudi Arabia and Russia cutting their supply, prices have risen. However, not all hope is lost. 😊 The Fed is going to be taking a look at Core CPI to make their decision, which takes out food and energy costs. They are looking at the trends in services and home prices to see if any more action needs to be taken.

What is the street expecting?

90% chance the Fed will not raise interest rates further in September.

54% chance the Fed will not raise interest rates in November.

Why does this matter to you?

Rising interest rates mean borrowing money is more expensive. So the most obvious correlation to most consumers is the price of homes is way more unaffordable. Within public markets, growth stocks take a bigger hit since their price is more determined by the present value of future cash flows.

So everyone will be keeping a close watch on the news today, and if reports come out that inflation is under 3.6% this could be the driving force in restoring confidence to investors heading into Q4.